Transaksi Afiliasi dan Kepemilikan Ultimate: Praktik Tax Avoidance sebagai Sustainability Problem

Abstract

The purpose of this study is to understand the adverse impact of affiliated-party transactions on tax avoidance practices and identify the role of the ultimate shareholders (voting_rights and cash flow_rights divergence) in determining firms' policies utilizing affiliated-party transactions to conduct tax avoidance. The research seeks not only to focus on the phenomenon of tax avoidance in a firm's internalization but also on offering ideas about the sustainability problem of these actions. This study used a sample of companies on the Indonesia Stock Exchange (IDX) during the 2019-2021 period, which was analyzed using moderation regression analysis (MRA). The results of the study simultaneously proves that firms take advantage of affiliated-party transactions as a strategy for efficiency and utilize affiliated-party transactions for tax avoidance practices, which causes sustainability problems and ultimately have an impact on social welfare. Therefore, tax regulations and policymakers must devote attention to this. Furthermore, this study provides empirical evidence that the role of the ultimate shareholders reduces tax avoidance practices through affiliated-party transactions based on a socioemotional wealth (SEW) perspective.